I don't think you're alone. In fact, I bet there's at least one solution to this for every musician alive today. I'd even bet that most musicians have three or four ways to combat this since none of them work quite as well as they like.
I think the key to all of the solutions is to find ways to convince yourself to play music, rather than record a recording. It's the difference between living in the moment and living in the future. If you're just playing music, you're in the moment. Your sole job is to play the music, and if it happens to get recorded, great. If you're recording a recording, you have an image of what you think it should sound like in your head and you're forcing it out through your fingers. The more you stress, the more you force it.
Not that any of that paragraph is news to you, of course.
I feel like whatever I play it doesn't come out good enough and the more I repeat, it starts sounding bland to me
I think there's an opening here to help break free of the recorder blues. You chose to use the word "repeat." Try to avoid using that thinking. The last version got played. It's done. Play a new rendition of the song. Give it it's own energy. Thinking of each and every take as its own unique rendition can help prevent it from going dull by repeating the same song over and over. It's a small mindset shift, but its one that can inspire your fingers.
Uniqueness also helps with the issue of mistakes. Instead of thinking "oh, this take is ruined," think of it as "oh, this take is unique." Sometimes, later, you'll have to admit that yes indeed this take is ruined, but don't think of it that way until later. Sometimes, you may find that that particular deviation inspired something new that you never thought of before. I'm rather confident that a series of deviations is how the entire jazz genre got started!
I remember seeing Lindsey Stirling in concert where she demonstrated this effect brilliantly. Like all big names, Lindsey had an opening act. They, like all opening acts, were less polished than the main act. That's no surprise. Lindsey chose to bring the singer back on stage part way through her main set and did a duet with her. On one note, the singer simply missed. It was as wrong of a note as any note you might have hit on your recording. Lindsey, of course, hit the right note on her violin, but then without a moment's hesitation, she slid the note up to the "wrong" note. In doing so, she made the "wrong" note sound right, and who was to argue with her? As a result, we got to hear a unique rendition of the song that no one else has gotten to hear, and frankly, it demonstrated something amazing that the original couldn't. I wouldn't have remembered that performance of the song if it had been done right, I remember it for being done wrong brilliantly.
Failing that, find an excuse to get used to the big red button. Record random parts of your life. Records yourself washing dishes. Try to wash dishes such that the recording sounds perfect! Perfect, of course, is by your own definition, and that's the point. Once you're ready to put your audio track of washing dishes up on youtube, I'm confident you'll find recording an instrument is a lot less daunting!